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Friday, September 7

7th Sep - EU Open: Sega Rally

All the
coverage on ECB’s decisionis in my ECB Watch-post (continuously updated). I
wrote my own quick views in last night’s US Close: "Euro-QE" (with plenty of high-quality article links). For this morning, only the regulars and couple of payroll previews. It is very hard for me to see how the payrolls could turn the market bearish right now - after the ECB the sentiment is bullish, market is technically strong, and good numbers would mean everything is good, while bad numbers would mean everything is still bad, but future looks nice and QE is more probable. I will update my views during the weekend. I was happy with the previous views and levels, and they worked up to the ECB's "bomb". I think we are in for uncertain times, as it is impossible to preview when the weaknesses in the ECB plan show up.

Quote of
the day: The eurozone mess is the classic illustration of a saying attributed
to Herbert Stein, “Economists are very good at saying that something cannot go
on forever, but not so good at saying when it will stop.” But while it once
looked like market pressures would force a change in policy, it now looks like
the shift will come as a result of punitive austerity, either open revolt or
widespread disobedience. And they can be as abrupt as market events. – Yves
Smith / naked capitalism

The ECB confirmed more details on its plan to
buy EU bonds overnight and gave risk appetite a boost late yesterday and
extended into the Asian session. Australia posted a deficit of A$556 mln in July on slower shipments of ores and
minerals to China

European markets are expected to take a
breather and open mostly flat Friday. The ECB unveiled an unlimited bond buying
programme yesterday to tackle the region's debt crisis. Markets await US
monthly Nonfarm Payrolls data due later today.